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On November 15, 2007, Microsoft celebrated Xbox Live's 5th anniversary by offering its then over 8 million subscribers the title Carcassonne free of charge and awarding gamers who had subscribed to Live since its inception 500 free Microsoft Points.

Due to intermittent service interruptions during late December 2007 and early January 2008, Microsoft promised to offer a free Xbox Live Arcade game to all Xbox Live users as compensation, in an open letter to all Xbox Live members from Mark Whitten, Xbox LIVE General Manager.

Microsoft has announced plans to extend Live to other platforms such as handhelds and mobile phones as part of the Live Anywhere initiative.

The Xbox Live service is available as both a free service, known as Xbox Live Silver and a subscription-based service known as Xbox Live Gold, respectively, with most features such as online gaming restricted to the Gold service.

On November 12, 2009, Dennis Durkin, COO of Microsoft's interactive entertainment business, announced that November 10, 2009, the release of Call of Duty: Modern Warfare 2 marked the busiest day ever on Xbox Live, with over two million active users simultaneously.

On the same day, Larry Hyrb, Xbox Live's Major Nelson, announced on his blog that Xbox Live support for the original Xbox would be discontinued on April 15, 2010, including online play through backwards compatibility on the Xbox 360 and all downloadable content for original Xbox games.

This would allow not only for significant downloadable content, such as new levels, maps, weapons, challenges and characters, to be downloaded quickly and stored, but also would make it possible to standardize bandwidth intensive features such as voice communication.The packaging for playable Xbox Live titles on the original Xbox console featured the trademark gold bar underneath the Xbox header.Tom Clancy's Splinter Cell and Brute Force sported a Live "bubble" design, as they only featured downloadable content.Nevertheless, due to lack of widespread broadband adoption at the time, the Dreamcast shipped with only a dial-up modem while a later-released broadband adapter was neither widely supported nor widely available.Downloadable content was available, though limited in size due to the narrowband connection and the size limitations of a memory card.

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